In what appears to be the week that will never end, Voyager Digital (TSX: VOYG) received another kick in the teeth last night, when it was announced that major shareholder Alameda Research had voluntarily given up a significant percentage of its holdings in the company.
Alameda last night disposed of 4.5 million shares, reducing its position by 2.29%. Notably, the disposition occurred by Alameda giving the shares back to Voyager, whom then cancelled the shares. No consideration was provided as part of the transaction, meaning Alameda quite literally gave them away for free.
In dollar terms, the shares are valued at roughly C$3.4 million as of June 22, when the transaction is reported to have occurred, despite being reported last night.
The transaction comes less than a week after the firm realized it was required to report on its public holdings in Voyager. Despite having participated in a transaction that closed on May 31, the firm failed to indicate to the market that its ownership exceeded 9.99% until June 17.
Prior to giving shares back, the company owned 11.56% of Voyager. After giving effect to the transaction, the company now owns 9.49% of the issued and outstanding shares of Voyager, removing the need to report its holdings based on insider filing requirements.
In effect, it means that Alameda is free to sell off its position without broadcasting as much to the market. Evidently, the ability to do so is worth at least $3.4 million.
Alameda Research currently owns 18.2 million shares of Voyager Digital.
The development follows the news earlier this week that Voyager has significant exposure to the failing hedge fund Three Arrows Capital, to the tune of $655 million. The crypto platform on Wednesday was also forced to reduce withdrawal limits from $25,000 per day to $10,000 per day following apparent liquidity concerns. Alameda this week also notably agreed to provide half a billion in additional liquidity to Voyager via multiple credit facilities.
Voyager Digital last traded at $0.73 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.